Bitcoin (BTC) Price Analysis: Descending Broadening Wedge Pattern Signals Bearish Momentum, But Oversold Conditions Suggest a Potential Short-Term Shift

Bitcoin (BTC) is moving within a large descending broadening wedge pattern, often signaling bearish momentum. However, recent oversold signals suggest a potential short-term shift.

Bitcoin price may experience larger volatility during the new trading week, impacting support or resistance levels. Here's a closer look at the key price zones traders should watch, according to a recent analysis by Josh, a pseudonymous cryptocurrency analyst.

Bitcoin’s price has been trading within a large descending broadening wedge pattern on the 4-hour chart, which often signals bearish momentum. However, recent oversold signals indicate a potential short-term shift.

Crucial Resistance and Support Zones to Monitor

The Supertrend indicator on the 4-hour chart is still showing a bearish trend, denoted by the red line below the price candles. This indicator typically identifies the primary trend direction.

Hence, until Bitcoin manages to break and close above a significant resistance level, which is around $67,000 to $68,000, according to Josh, the cryptocurrency is likely to continue in this broader bearish trend. For bullish momentum to gain a strong foothold, BTC must break and maintain levels above this range.

On the daily chart, Bitcoin encountered a bounce from a key support zone between $60,000–$61,000. If this support holds, short-term resistance is expected at around $63,000, with further resistance at $64,200. Stronger resistance lies closer to the $67,000-$68,000 range.

Weekend Price Volatility and Key Liquidity Levels

During the weekend, Bitcoin’s price may stay relatively stable with minor bullish relief. If Bitcoin does see an upswing, liquidity zones around $62,700, $63,400, and $64,200 could serve as potential resistance areas.

However, a drop could see Bitcoin test the liquidity at around the $60,000 mark, a scenario more likely to play out during the week when trading volume rises.

DXY Influence and Weekend Outlook

A recent bullish spike in the DXY (U.S. Dollar Index) has posed bearish pressure on Bitcoin and the broader cryptocurrency market. While DXY typically does not trade over weekends, low volatility and trading volumes can often lead to more stable weekend price action for Bitcoin.

RSI Reset and Trend Continuation

The relative strength index (RSI) on the 4-hour chart has recently reset to a neutral level, giving Bitcoin more room to the downside. This RSI reset could lead to continued bearish trends after short-term consolidation or mild bullish relief, especially if a volatile move kicks off in the upcoming week.

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